Reservation Agreement 10ARROS. A Townhouse-Style Condominium Community

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1 Reservation Agreement 10ARROS A Townhouse-Style Condominium Community This Reservation Agreement (Agreement) dated the day of, 20 is between Grist Realty, Inc, Listing Agent for the Seller, 10ARROS, LLC ( Seller ), and, as Buyer(s)/Purchaser(s). 1. Seller plans to construct a condominium community, 10ARROS, located at 533 and 537 New Bern Ave in Raleigh, NC. 2. Buyer / Purchaser hereby reserves for purchase Condo #, as generally shown on the Site Plan attached to this Reservation Agreement as Exhibit A, upon the following conditions: A. The Parties hereby expressly acknowledge and agree that this Agreement is not and shall not be construed as an offer, acceptance of an offer or an agreement for purchase or sale of any particular condominium unit, but rather is an expression of their good intention to use their best effort to enter into an agreement for the purchase and sale of the Unit. Neither Party shall have any rights or obligations with respect to the other and/or the Unit until such time as they have entered into a valid agreement for the purchase and sale of the Unit. Seller reserves the right to enter into more reservation agreements than number of condominium units to be constructed. Priority to contract for the purchase and sale of a unit shall be awarded to buyers based on effective date of the reservation agreement for such unit. B. On the Effective Date, Buyer shall deposit with Seller two thousand five hundred dollars ($2,500) (the Reservation Fee ). This Reservation Fee shall be fully refundable up to and until five (5) days following the issuance of the purchase contract documents. The Reservation Fee will be held in a non-interest bearing escrow account by Sam Weathers Attorney, Escrow Agent. Seller shall provide Buyer with notice of the issuance of purchase contract documents at the address for Buyer indicated below. C. The estimated purchase price of the Unit is $. Notwithstanding the foregoing, the actual purchase price of the Unit, as of the effective date of the purchase and sale agreement for the Unit, may differ. The Seller reserves the sole and exclusive right to make changes in the terms and conditions of sale, along with condominium prices, at any time prior to actual execution of any purchase and sale agreement. In addition, actual purchase price will depend on any upgrades to standard features selected by Buyer.

2 D. Within five (5) days of executing this Agreement, Buyer shall provide a prequalification letter from Seller s Preferred Lender, indicating that the lender has done a full review of credit-worthiness and income, and that Buyer / Purchaser is presently qualified to secure a permanent mortgage loan in an amount equal to at least ninety-five percent (95%) of the estimated purchase price of the condominium being reserved. Any Buyer / Purchaser who fails to provide this pre-qualification letter as required herein, within the five (5) day period described, will have its Reservation Fee promptly returned and the Reservation Agreement will be null and void. Listing Agent reserves the right to, at its sole discretion, waive this requirement as it deems appropriate. E. When available, and provided this Reservation Agreement remains in effect, the Listing Agent, Grist Realty, Inc, will present final contract documents to the Buyer / Purchaser. These documents are expected to include a Purchase and Sale Contract including final condominium price, owner s association documents, general plans and specifications for the condominium and other related documents. F. Buyer / Purchaser shall have five (5) days from receipt of these documents to sign all submitted documents and to submit an additional deposit so that Buyer / Purchaser s total deposit including the Reservation Fee, equals five percent (5%) of the condo purchase price (Builder Deposit). If Buyer / Purchaser fails to execute the final contract documents during the five (5) day period and fails to make additional deposit of the remaining 5%, this Reservation Agreement shall be null and void with the Reservation Fee being promptly refunded to Buyer / Purchaser and neither party shall have any further obligation to the other. G. In order to assure the project conforms with FNMA guidelines, the Seller reserves the exclusive right to refuse the sale of condominiums to non-owner occupants and investors. H. The Seller reserves the exclusive right to refuse the assignment of a contract to someone other that the original Buyer / Purchaser and to further establish rules and regulations of its sole determination from time to time regulating such assignment. 3. Each Buyer / Purchaser shall complete this statement by initialing one (1) of the following: I am reserving the above referenced condominium unit for: My primary residence My secondary residence, not for rent Investment purposes, solely for rent and long-term ownership

3 4. Each Buyer / Purchaser shall indicate that they have read and acknowledged the following attached exhibits with their initials: (EXAMPLES) Buyer / Purchaser Initials: Exhibit A - Condominium Site Plan Buyer / Purchaser Initials: Exhibit B - Condominium Unit Plan Buyer / Purchaser Initials: Exhibit C - Condominium Features Sheet Buyer / Purchaser Initials: Exhibit D - (Other) 5. By signing below, the Parties acknowledge that they have read and agree to the terms and conditions set forth herein. BUYER / PURCHASER (SIGN) (PRINT) ( ) BUYER / PURCHASER (SIGN) (PRINT) ( ) BUYER S AGENT (PRINT NAME) ( ) SELLER / 10ARROS LLC, BY AGENT: (SIGN) (PRINT) Stuart Cullinan, Manager

4 ACKNOWLEDGMENT OF RECEIPT OF RESERVATION FEE Seller s Listing Agent, Grist Realty Inc, hereby acknowledges receipt of $2500 reservation fee for unit # at 10Arros by, Buyer(s), to be delivered immediately to Sam Weathers, Escrow Agent. (LISTING AGENT SIGN) (PRINT NAME) (ESCROW AGENT SIGN) (PRINT NAME) [COPY OF CHECK MUST BE ATTACHED HERE]

5 Reservation Agreement Exhibit A [Site Plan]

6 Reservation Agreement Exhibit B [Unit A Plan]

7 Reservation Agreement Exhibit B [Unit B Plan]

8 Reservation Agreement Exhibit C - Unit Features (Some design elements are subject to change) Common Area - Street front parking - Sidewalk, landscaping, and walk-ups - Irrigation system - Common area hose bibs for watering and car wash - Curb-and-gutter driveway lot with turn-around space - Community green area for future dog walk (TBD) - Community bike rack (Location TBD) - Centrally located mail box (Location TBD) Building Exterior - Poured concrete foundation walls and slabs with damp-proofing exteriors and perforated french drain systems around all areas of building - Framing to meet Energy Star guidelines - Amaar Heritage Ribbed panel garage door - Metal front stair railings - Front entry awnings - Sierra Pacific SuperSeal 8000 Vinyl Casement windows - Fiberglass flush glaze exterior doors - Cement fiber lap siding and paneling exterior walls per elevation plan - Vented storage area for trash and recycling bins - Covered rear deck with storage - High performance and reflective 60-mil TPO flat roof membrane (Manufacturer TBD) - GAF Timberline HD Architectural shingle over end-unit stairwell - Floating 12 x 12 or larger IPE wood interlocking tiles (with plastic raised feet) for roof deck on end units (This design still not final) Unit Interior - Smooth concrete floors on first floor - Site finished white oak hardwood floors throughout main floor - 8 baseboard moulding throughout, no crown moulding - Mohawk Sissal Impressions Shoreline carpet in third floor bedrooms and closets - Solid core doors on all bedrooms and bathrooms - Spray foam insulation around windows, doors, and in third floor ceiling - Double studded common wall construction - Triple zoned 14 seer heat pump HVAC system with digital programmable touch screen thermometer - Electric water heater located in garage - Dimmers on pendant lights and all can lights except bathrooms, hallway, and garage

9 Unit Interior cont. - Ceiling fans in living room and third floor bedrooms (TBD) - Pre-wired for HDMI, phone, cable, USB charging outlet - Velux curb-mounted skylights providing natural sunlight on interior unit stairwells and all mater baths - Velux curb-mounted sun tunnel skylight providing natural sunlight on interior unit dining wall - Open stair way with glass railing or metal/wood screening (Style TBD) Kitchen (all design choices still not final, will have prior to contract) - Marsh cabinets with soft close drawers and doors (Design choices are spec only, still not final) - Island cabinet 16 deep with legs for barstools - Quartz countertops with eased edges (Design choices still not final) - GE electric appliance package includes refrigerator (Model numbers available) - Microwave hood vents to exterior - Backsplash tile (Design choices still not final) - Pantry - Single basin sink with disposal and integrated flush mount switch Bathrooms (all design choices still not final, will have prior to contract) - Tile flooring - Tile tub surrounds with glass corner shelving - Quartz vanity countertops - Square under mount sinks - Frameless mirror for each sink - Frameless glass shower surround with no door - Polished chrome accessories - Robe hooks - Large walk in closets with built-in sweater and shoe boxes (Design not final)

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